Now Playing

10/7/2013 12:43PM

Airbus Clinches Japan Airlines Deal in Blow to Boeing

Airbus scored a landmark order for its jetliners with Japan Airlines Co. worth more than $9 billion on Monday, breaking into territory long-held exclusively by Boeing. Jon Ostrower reports on Lunch Break. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... I ... Jeannie lands must deal with Japan Airlines ... in and saying history of exclusivity between what will Boeing and the new Wealth hairline was that mean for Boeing ... will tell you ... more it's Monday Oct seven welcome to lunch break I'm Simon Constable in full Wendy ... and joining us now this does this of this deal with big deal is shown all strive easy at Watford on Helen for four days in Chicago and areas ... Sean thank you Brian much for being map ... publisher ... said to surge on out and tell us when the size of a deal because of a team no less ... it is a very big deal on it it's ... not big in terms of ... other numbers so skewed with it but also was overall significance for the ... Boeing on their bus in mediation and more broadly ... on its four up thirty one year plus the three fifty aircraft which are long-range aircraft which the Citadel ... of Everton three hundred and fifty ... three it earned fifty passing ... by ... Joe is not taking ... up ... an additional twenty five options on those ... and other value of the firm orders that the first of thirty one aircraft is really about nine billion dollars you can be sure ... that ... there must be a pretty hefty discount to break into a market long held by Boeing ... like ... with gels and and and and basically has been an exclusive leave Boeing Nanfang amid falling has for me and all of Japan Airlines buying a of of the plants ... this must be a bit of a shelf of a following ... wind did this happen ... well ... a lot of this has been building for for a long time ... ah the consensus is that that this is really ... of the long term effect ... of ... the delays that that Zhao ... and done ... all Nippon Airways which of four to seventy seven along with gel ... I've been really suffering with treated us all to go ongoing delays ... we above the seventy seven Dreamliner in its development ... so ... I'll what what really changed here ... was up gels both moving through bankruptcy ... and reorganizing toward a different treatments ... so like dropping a lot of their Barker ... awesome foursome actual girl to seven forty seven aircraft ... and looking at all more are cost conscious model ... after coming out of bankruptcy and ... Airbus is trying to ... see chore deals with them for for literally you know ... well over a decade or longer ... the really give them upright position but this is really a significant win for for her bus ... as far as getting ... traction in the Japanese yet mean added to this can be over fifty will launch a craft the BP said on all small things the mass long been a rivalry ... between these two companies on a summer ... tended to have tended to store it needed to get out inside of the of the film ... The Wolf trade ... forum ... on ... on this most importantly though the US ... needs exports and an aircraft orders provide grants for what is this due to the two will guzzlers ... will this disorder actually begins Liberty twenty nineteen ... so it we won't see any effect on exports for for quite sometimes if at all ... awful Boeing Airbus to have record order backlogs of the filling right now on the comes with ... a record production rates at up to that both manufacturers ... of Boeing's issue said Tuesday hit a record high this year with a number of deliveries that expecting between ... six hundred thirty five and six hundred forty five ... which really would be that the most of it ever seen ... so we don't ... build rates are going up across the industry right now to meet the demand ... the question is long-term whether or not the cyclical effects of the industry really will take over whether or not ... on you to restate it we're currently seeing are sustainable and in the job you would necessarily effect that ... even in the medium term ... as far as the setting up orders that really are showing up in the back ... courts often on one twenty month old thank for of for about five The to come thank you very much Tom